ACE Money Transfer - Blog

Will Having a Savings Account Help You in 2023 as an Indian Expat Worker?

Will Having a Savings Account Help You in 2023 as an Indian Expat Worker?

09 Jan 2023


What prompted the need to ask this question?

As an Indian expatriate, you must wonder if a Savings Account can be helpful for better financial management to ensure economic stability. Most Indians who reside in foreign countries earn a living and send money to India to support their families back home.

Up until a few years ago, banks were the only financial institutions that offered general and specialised financial services, including money transfers, deposits, safekeeping of funds, etc., to people on a large scale.

Managing life in a foreign country and simultaneously supporting the family back home is always daunting. If an expatriate knows the best budgeting techniques, financial management becomes easier. Savings are always critical for every expat worker for future security and emergencies, which they can ensure through different strategies. A savings account also significantly helps overseas workers save money for future use and simultaneously get other benefits.

Still, most overseas workers remain uncertain about whether a savings account can be helpful for them in the times ahead.

This blog will throw light on whether banks and the savings accounts you open with them will help you as an Indian expatriate or not.

A Brief Background about the Need to have a Savings Account as an Expatriate

India is the world’s 5th largest economy and is developing fast, but the country still faces grave challenges, including rampant poverty and a high unemployment rate.

In addition to that, the country’s burgeoning population strains the country’s limited resources, and people find it difficult to provide for those dependent on them.

Therefore, large swathes of Indian people travel to foreign countries for better employment opportunities that they cannot find in their native country.

According to the Indian Ministry of External Affairs, about 32 million NRIs (Non-Resident Indians) are spread worldwide and make up the world’s largest diaspora.

But given that India is a third-world country, the newer means of offering financial services are limited, whose access is further compounded by a lack of necessary infrastructure. So, people still rely heavily on banks and open accounts in them to keep their savings and money saved, a purpose a savings account adequately serves.

Before you take a look at a savings account and all the associated details that you must know about it, a quick look at the Indian economy is essential.

The Economy of India – Fast Facts

  • India is the 5th largest economy worldwide, with a nominal Gross Domestic Product (GDP) of $3.469 trillion.
  • It has a Purchasing Power Parity (PPP) of $11.665 trillion, 3rd largest worldwide.
  • It has a nominal GDP per capita income of $2,466, 139th worldwide.
  • It has a PPP per capita income of $8,293, which is 127th worldwide.

These statistics show that the country is faring better, but deep poverty and increasing population still stress the country beyond its strength.

It makes basic needs of life difficult to meet, and the Indian people travel to foreign countries for better jobs. After getting employed, they support their families financially through a swift money transfer to India regularly.

What is a Savings Account, and How does it Serve You as an Indian Expatriate?

A savings account is a basic deposit account you hold at a bank or other financial institution offering similar services. This account helps you hold the money you don’t need to spend urgently. The money held in the account benefits you manifold, especially in terms of interest rates and increased exchange rates from time to time.

You get a modest interest rate on your deposits in a savings account. These accounts are great for parking the cash you want available for your needs at any time.

Thus they are a great way for you as an Indian expatriate to send your remittances to your savings account back home to keep the money safe and earn some profit that you cannot get without such an account.

Advantages of a Savings Account

  • These accounts are easy to set up and process.
  • You can move your money to and from it quickly.
  • You can link your primary checking account with a savings account.
  • You can withdraw your full amount at any time.
  • Different banks offer insurance on varying amounts against bank failure.

Types of Savings Accounts

The following are the main types of savings accounts serving different purposes.

Traditional Savings Account

These are offered by any bank and are included in basic banking services. You can get the above-mentioned benefits largely from this type of savings account.

Savings Account that offers High Yields.

Online banks offer these, and you get higher interest rates compared to regular savings accounts. You can save enough when you make an online money transfer to India via ACE Money Transfer every time at the highest exchange rates and the lowest transfer costs. This option serves you best if you don’t rely on a savings account.

Money Market Accounts

These are offered by both online and traditional banks and offer services that blend savings and checking accounts.

CD Account

These are Certificates of Deposit. In these, you deposit your money for a stipulated time in which interest is added to it, and you can either withdraw money at the maturity of the term or enter into another CD.

Speciality Savings Account

In these accounts, you can reach specific savings goals that you have set with the help of the bank you have opened such an account.

You can open any of these accounts according to your financial requirements. Knowing about different banks and their services can help you choose the right one for opening a savings account. The following list can help you in this regard.

List of Best Indian Banks

Here is the list of the top 10 Indian banks where you can open a savings account.

  • HDFC Bank
  • ICICI Bank
  • Axis Bank
  • Bank of Baroda
  • Kotak Bank
  • IndusInd Bank
  • State Bank of India (SBI)
  • Punjab National Bank
  • Bank of India
  • Canara Bank

Will an Online Money Transfer to India to a Savings Account be Helpful for an Indian Expatriate?

Yes. 

You will get the above-mentioned benefits from a savings account right away and will have the satisfaction of keeping your money saved and easily accessible too.

ACE Money Transfer – Adding to Your Financial Benefits

Make sure to send money to India online from abroad now and in the future smartly by choosing a service provider that offers safety, speed, live and competitive currency exchange rates, 24/7 service access and availability, and much more in exchange for a low fee so that you can save more and add to the monetary benefits a savings account has the potential to offer.


Tips

PREVNEXT
Study and Work Abroad Options for the Gambian People - A Quick Guide
The Importance of Learning the Local Language in Europe for Filipino Expat Workers

Comments